U.S. economy shrinks 2.9 percent in first quarter

12:09 AM,
Jun. 26, 2014

The U.S. economy turned in its worst quarter in five years during the first three months of 2014.

Written by

Paul Davidson
Gannett

The U.S. economy turned in its worst quarter in five years during the first three months of 2014, shrinking more sharply than previously estimated.

The nation's gross domestic product in the first quarter fell at a 2.9 percent annual rate, vs. the 1 percent contraction previously believed, the Commerce Department said Wednesday. Economists surveyed by Bloomberg expected a 1.8 percent drop in output from the fourth quarter.

The decline was the sharpest since growth tumbled 5.4 percent in the first quarter of 2009, during the Great Recession. It was also one of the worst falloffs outside of a ...